Asked by Leslie Alaniz on May 31, 2024
Verified
On April 4, Noreen Cox negotiated a $14,000 bank loan for 240 days at an interest rate of 6%.
Required (show your calculations):
a) Determine the maturity date of the note.
b) Calculate the amount of interest charged by the bank.
Maturity Date
The date on which a financial obligation or investment becomes due for payment or expires, marking the end of its term.
Bank Loan
A bank loan is a sum of money lent by a bank to a borrower at an agreed interest rate and repayment schedule.
- Execute interest calculations on promissory notes through the use of the basic interest formula.
- Establish the completion date for a promissory note's term.
Verified Answer
NM
Nawid MajediJun 06, 2024
Final Answer :
a) November 30 (April 26 days, May 31 days, June 30 days, July 31 days, August 31 days, September 30 days, October 31 days, November 30 days)b) $14,000 × .06 × 240/360 = $560
Learning Objectives
- Execute interest calculations on promissory notes through the use of the basic interest formula.
- Establish the completion date for a promissory note's term.